According to Edmunds.com chief economist, consumers and dealers need not worry about the recent stock market turmoil negatively affecting the new-car shopping process.

Noting a few issues that are particularly important to new-car buyers, Lacy Plache concluded that despite the recent stock market downturn and downgrading of U.S. credit rating, car loans will still be available, interest rates will not increase and new-vehicle prices will not likely climb — though incentives may be on the rise.

Expanding on these points, Plache said, “The turmoil is unlikely to have a negative effect on car buyers. All market factors suggest that credit will remain available, that interest rates will remain stable and that incentives may help keep car prices low in the immediate future.”

Since the potential impact of the unstable U.S. economy on the vehicle market might have some consumers feeling nervous or hesitant about buying a new car, Edmunds.com offered some specific explanations backing up Plache’s predictions.

Car Loan Availability

Regarding Plache’s stance that asserts car loans will continue to be available for credit-worthy buyers, company officials note that “lenders are not currently lending as broadly to the subprime portion of the market as they did prior to the last recession, so they will not be facing as much risk by continuing their current lending practices.”

Moreover, Edmunds.com analysts stressed that making sure car loans are available to consumers is actually in dealers’ best interest, stressing that the availability of credit is “essential to their (dealers) ability to sell vehicles.”

Credit Might Remain Available, but Will Interest Rates Increase?

Plache says no, explaining that many low-interest incentives are available, citing current zero-percent financing offers on select Chrysler, Ford and Nissan models.

Besides noting low-interest incentives available in the current market, Plache said car loan interest rates won’t rise anytime soon because of what she calls a “counterbalancing effect.”

"U.S. debt is the world’s reserve collateral. More Treasury bonds will now be required to secure loans, meaning that the demand for the bonds will increase. This, in turn, will keep downward pressure on U.S. debt interest," Plache stressed.

Edmunds.com analysts predict this trend will keep auto loan interest rates stable.

As the Stock Market Continues to Waver, Will New-Car Prices Rise?

While automakers hurt by the recent natural disasters in Japan continue efforts to restock inventories and make up lost sales, dealers are also trying to get 2011 models off their lots to make room for incoming 2012 models.

Plache predicts that these two factors will create a “competitive market” that could lead to more incentives and lower prices.

Edmunds.com senior consumer advice editor Phillip Reed also offered some advice for consumers looking to buy new cars amid an unstable market: “While the upheavals in the economy are not likely to change shopping conditions, there are always fluctuations in the market that car buyers should be aware of.

“Before heading to the car lot, it’s important to check current incentives and rebates, arrange financing and check the True Market Value of both the car you want to buy and your trade-in. Using these car buying tools will keep you on course — whatever turns the economy takes,” he concluded.